FW: A VIRTUOUS CIRCLE ?

Dear Amitabh ,

FYI

regards,

hemen

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Monday, February 23, 2015 9:01 AM
To: 'ajaitley@sansad.nic.in'; 'ajaitley@del5.vsnl.net.in'
Cc: 'mos-planning@gov.in'; 'bdebroy@gmail.com'; 'asubramanian@cgdev.org'; 'vk.saraswat@gmail.com'; '38ashokroad@gmail.com'; 'spprabhu1@rediffmail.com'; 'spprabhu1@gmail.com'; 'email@nitingadkari.org'; 'smritizirani@sansad.nic.in'; 'smritizirani@gmail.com'; 'tc.gehlot@sansad.nic.in'
Subject: FW: A VIRTUOUS CIRCLE ?

Dear Friends

Here is my slightly " elaborated " version of yesterday's suggestion

regards

hemen parekh

www.hemenparekh.in  > Blogs

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CREATE     SELF - EMPLOYMENT

Dear Shri Jaitleyji :

I know that the Central Budget is already under printing and it is too late for you to make any changes at this stage

But , nothing stops you from making " STRATEGY " announcements in your budget speech , such as :

"  This government will adopt a strategy of generating Self Employment , to provide meaningful work - and respectable income , to more than ONE MILLION jobseekers every month

To 50 MILLION jobseekers in the next 50 months

By getting banks to advance , small , low-interest loans to those 125 million poor persons , who have opened bank accounts under Jan Dhan Yojana 

And , by abolishing Personal Income Tax altogether , for such Self Employed persons  , for all deposits made into these accounts for next 5 years "

Reason is obvious :

It needs a fraction of the CAPITAL ( fixed + working capital ) to create a Self Employed job as compared to creating a job in Organized Sector ( Public or Private )

As you drive to the Parliament House on 28th morning , you will get to see on the road - or in those shops lining the road - , a lot of Self Employed persons .

What kind of CAPITAL ( in tools / machinery / Office - Factory space ) would be needed create each of those " Jobs " ?

Here are my guesses for investment and space requirement :

( What for ? / Office -Factory - home Space required ) :

*     Domestic Servants / Maids / Cooks........................  Rs ...   NIL

      (  Nothing / Nil )

*     Unskilled Workers...............................................   Rs ...   5,000

      (  Simple Tools / Construction Site / Road-side )

*      Milk Vendors / Delivery Boys..................                 Rs...    5,000

       (  Bycycle  /  operate from home  )

*     Pan-Bidi Gulla Owners..........................................  Rs....    5,000

       (  Stock in Dukaan /  25 Sq Ft footpath  )

*     Roadside Vegetable Vendors..................................  Rs...     2,000

       (  Daily purchase + 25 sq ft of footpath  )

*     Carpenters / Electricians / Plumbers etc................... Rs .....  2,000

      (  Tools of trade / Operate from home  )

*     Tailors / Watch Repairers......................................  Rs ......5,000

      ( Sewing Machine - Tools / Home or 100 sq ft of footpath )

*     Hairdressers........................................................  Rs...... 10,000

      (  Tools  /  100 Sq ft of shop rental )

*     Rickshaw Drivers...................................................Rs......  50,000

      ( Rickshaw / Operate from footpath )

I am sure your Ministry has better figures for 200 similar " Self Employed " categories . Or you may want to ask NCAER / NITI Ayog / HRD Ministry etc

Now , how much CAPITAL will be required to create one " EMPLOYED " job ?

Once again , here are my guesses :

*  In MSME businesses / companies......................... . Rs ... 2 Lakh

*  In large Organized Sector companies...................... Rs... 25 - 100 Lakhs

 Do you see the logic ?

For ONE job in large / organized sector , you can create 5,000 Self - Employed jobs  !

One more thing :

How long does it take to create such jobs ?

>    In large organized companies..................................... 3  / 4  years

>    In MSME companies.................................................  1  /  2  years

>    Self Employed jobs ( Skilling / Training Period )...........   3 / 6  months

Self Employment is the ONLY answer to avoid the fate of PIGS ( Portugal / Italy / Greece / Spain ) and a host of other , " Advanced Economies " - which borrowed BILLIONS of dollars from IMF / World Bank / Others   !

And now cannot pay back those loans  !

Dear Shri Jaitleyji :

We have neither time , nor the money to create ONE MILLION jobs every month in the organized sector

And we have promises to keep  !

I will be keenly listening to your Budget speech

with regards ,

hemen  parekh  /  Mumbai  /  22 Feb , 2015

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Sunday, February 22, 2015 10:47 AM
To: 'ajaitley@sansad.nic.in'; 'ajaitley@del5.vsnl.net.in'
Cc: 'mos-planning@gov.in'; 'bdebroy@gmail.com'; 'asubramanian@cgdev.org'; 'vk.saraswat@gmail.com'; '38ashokroad@gmail.com'; 'spprabhu1@rediffmail.com'; 'spprabhu1@gmail.com'; 'email@nitingadkari.org'; 'smritizirani@sansad.nic.in'; 'smritizirani@gmail.com'; 'tc.gehlot@sansad.nic.in'
Subject: FW: A VIRTUOUS CIRCLE ?

CREATE     SELF - EMPLOYMENT

Dear Shri Jaitleyji :

I know that the Central Budget is already under printing and it is too late for you to make any changes at this stage

But , nothing stops you from making " STRATEGY " announcements in your budget speech , such as :

"  This government will adopt a strategy of generating Self Employment , to provide meaningful work - and respectable income , to more than ONE MILLION jobseekers every month

To 50 MILLION jobseekers in the next 50 months "

Reason is obvious :

It needs a fraction of the CAPITAL ( fixed + working capital ) to create a Self Employed job as compared to creating a job in Organized Sector ( Public or Private )

As you drive to the Parliament House on 28th morning , you will get to see on the road - or in those shops lining the road - , a lot of Self Employed persons .

What kind of CAPITAL would be needed create each of those " Jobs " ?

Here are my guesses :

*     Domestic Servants / Maids / Cooks........................  Rs ...   NIL

*     Unskilled Workers...............................................   Rs ...   5,000

*     Milk Vendors / Delivery Boys..................                  Rs...    5,000

*     Pan-Bidi Gulla Owners..........................................  Rs....    5,000

*     Vegetable Vendors...............................................  Rs...     5,000

*     Carpenters / Electricians / Plumbers etc................... Rs .....  5,000

*     Tailors / Watch Repairers......................................  Rs ......10,000

*     Hairdressers........................................................  Rs...... 20,000

*     Rickshaw Drivers...................................................Rs......  50,000

I am sure your Ministry has better figures for 200 similar " Self Employed " categories

Now , how much CAPITAL will be required to create one " EMPLOYED " job ?

Once again , here are my guesses :

*  In MSME businesses / companies............................. Rs ... 2 Lakh

*  In large Organized Sector companies........................ Rs... 15 - 50 Lakhs

One more thing :

How long does it take to create such jobs ?

>    In large organized companies..................................... 3  / 4  years

>    In MSME companies.................................................  1  /  2  years

>    Self Employed jobs ( Skilling / Training Period )...........   3 / 6  months

Self Employment is the ONLY answer to avoid the fate of PIGS ( Portugal / Italy / Greece / Spain ) and a host of other , " Advanced Economies " !

Dear Shri Jaitleyji :

We have neither time , nor the money to create ONE MILLION jobs every month

And we have promises to keep  !

I will be keenly listening to your Budget speech

with regards ,

hemen  parekh  /  Mumbai  /  22 Feb , 2015

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Wednesday, February 11, 2015 10:57 AM
To: 'ajaitley@sansad.nic.in'; 'ajaitley@del5.vsnl.net.in'
Subject: FW: A VIRTUOUS CIRCLE ?

Dear Shri Jaitleyji

Allow me to withdraw my earlier suggestion re : INVERSE TAXATION regime

At this stage , it's introduction ( in your BUDGET on 28th Feb ) , will appear as " Business Friendly "

It is a pity that pseudo-experts and TV anchors , have tried to create a perception that anything " Business Friendly " , is automatically " People Un-Friendly "  !

As if , " Business-Friendly " and " People Friendly " are two mutually EXCLUSIVE concepts , whereas no two concepts can be more MUTUALLY INCLUSIVE !

In any case , despite AAP win in Delhi , fortunes of BJP ( in the forthcoming Bihar elections and other State Elections ) can be reversed by you - and you alone - , swiftly and decisively , on BUDGET day

By announcing total abolition of PERSONAL INCOME TAX

If not from this year , then from the next year . But , announced NOW ! Giving one year of preparation time

This ( announcement of yours ) , will be hailed by millions of Indians as , the MOST POOR FRIENDLY !

I believe , today , only some 30 million persons pay Personal Income Tax , contributing an INSIGNIFICANT percentage of total Central Revenue

Thru Jan Dhan Yojana , some 115 million bank accounts have been opened , with , nearly 73 % , having ZERO bank balance

Within 30 days of your announcement ( abolishing Personal Income Tax ) , expect these 75 million accounts to boast deposits worth Rs 10,000 / - each

That is Rs  750 BILLION   !

No one knows it better than you , HOW , and WHY this would happen  !

Simultaneously , announce creations of SPVs in which these money can be invested

You will solve many problems with one stroke  !

regards ,

hemen  parekh

Mumbai

0 - 98,67,55,08,08

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Monday, January 05, 2015 6:52 AM
To: 'ajaitley@sansad.nic.in'; 'ajaitley@del5.vsnl.net.in'
Cc: 'amitabh.kant@nic.in'; 'amitabhk87@yahoo.com'; 'amitabhk87@gmail.com'
Subject: A VIRTUOUS CIRCLE ?

Dear Shri Jaitleyji ,

I submit my following suggestion for your consideration

with regards ,

hemen  parekh

hcp@RecruitGuru.com

0 - 98,67,55,08,08

Mumbai

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For over two years now , I have been advocating ,

>   " Inverse Taxation Regime " both , for Personal Income Tax as also for Corporate Tax

       The more you earn , the less tax ( rate on next higher slab ) you pay

>   For Corporate , the more people you employ , the less tax ( rate on next higher slab ) you pay

>   Even total abolition of Personal Income Tax

There are over a dozen Countries where there is  NIL  personal Income Tax

So , there is a precedent that this can work  !

If Personal Income Tax was to be totally abolished , what can / may  happen ?

*   There will be no incentive for tax evasion / avoidance 

     This will be a permanent FULL STOP to future generation of Black Money

*   All payments will be received by cheques and deposited in Bank Accounts- digital banking on its way ?

*   All stashed away Black Money will , somehow , on its own , find its way in bank accounts, - including Black Money lying in Foreign Banks , making SIT redundant !

     This is the ONLY WAY , NDA  government can redeem its promise !

*   Savings rate will go up dramatically

*   That will lead to greater purchasing power for all people

*   Leading to higher domestic consumption of FMCG / Consumer Durables

*   This will result in huge collection of GST , offsetting revenue losses

*   Demand will go up , boosting manufacturing

*   With rise in manufacturing , sub-contracting / outsourcing will increase , giving a big boost to MSME sector 

*   If manufacturing goes up , employment / self-employment ,  will go up

*   For a change , we as a Nation , will learn to celebrate , 

     #    Wealth Creation as a means to reduce poverty

     #    World-size Companies to take on the World

*   There will be less pressure on demands for higher salaries / wages

*   If salaries / wages do not rise , inflation will ease

*   Cost of manufacturing too , will go down

*   Era of " Low Cost Economy " will set in ( VIRTUOUS CIRCLE ? )

*   Savings will move from gold / land to Financial Assets

*   With a low cost structure , our products / services  will become , internationally competitive and exports will go up

*   That will improve our current negative Trade Balance / CAD

*   This ( abolition of Personal Income Tax ) should be coupled with SPVs for 

     #    Infrastructure Projects ( especially Smart Cities / Corridors etc )

     #    Educational Institutions

     #     Skill Development Institutions

     #     Health care Facilities

     #     Solar Power ( Eqpt Mfr / Generation / Transmission / Distribution )

     #     Digital India ( Broadband ) Network

     No questions must be asked as to the source of money invested in such SPVs

    All income ( Corporate Income or Personal Income by way of dividends / interests etc ) arising out of investments made in such SPV , must be tax-exempted

SPVs , themselves , must not need to pay any taxes for 10 years 

*   What else  ?

I hope our newly constituted " Niti Ayoga " will examine my suggestion and guide framing of  

 >    2015 Central Budget NITI 

----------------------------------------------------------------------------------

hemen  parekh / Jan 05 , 2015

www.hemenparekh.in

From: Hemen Parekh [mailto:hcp@recruitguru.com]
Sent: Tuesday, July 08, 2014 4:04 PM
To: 'pjamwal@gmail.com'
Cc: 'ajaitley@sansad.nic.in'; 'ajaitley@del5.vsnl.net.in'
Subject: Day After Tomorrow

Central  Budget  :  2014

Dear Shri Arun Jaitleyji,

Even as you proceed to present Central Budget to Lok Sabha on 10 July 2014 , please look out the window of your car and see the " Poor " people on Delhi's footpath

Then , like Mahatma Gandhi ask yourself,

"  Whatever budget proposals that I am about to present , will these bring a smile to the faces of these poor  ?

363 million poor Indians , who eke out a survival on expenditure of Rs 32 ( rural ) or Rs 47 ( urban ) per day  ?  (  $0.5 - 0.8 / day  )

For a family of 4 , that works out to , Rs 3840  -  Rs 5640 per month

(  $ 64  -  $ 94 per month )

May be the head of the family manages to earn Rs 2,000 per month , doing odd jobs , here and there

The rest of the income must be coming thru ,

*  Wife scavenging the garbage heaps for discarded plastic bags / bottles

   ( when she is not salvaging discarded food  !  )

*  Children begging on the streets ( you will see them as you drive to Lok Sabha )

Now if,

*   Our population keeps growing at 15 million per year

*   Inflation keeps rising at 10 % per year, necessitating raising " Poverty

     Limit " by 10 % per year

Then ,

*   How many more people will get added to "Poor "population, every year ?

May be 5-7 million/year  ?  25-35 million by 2019 ? Taking the total to 400 million  ?

Mr Jaitley ,

Can you listen to their anguished cries ?

They are " begging " you to create jobs for them , so that they can work hard and earn an honest / decent income , which can lift them above that wretched " Poverty Line "

They don't want your dole-outs / subsidies for food / LPG / Kerosene etc  !

They don't want to remain dependent on Sarkaar - Maa Baap , for ever  !

Sir ,

Can you ( ie Central Government ) give them jobs ? To even 50 million / year  ?

Assuming that creating ONE job calls for an investment ( in fixed assets + working capital ) , of Rs 1 million ( Rs 10 lakhs ) , you need,

* Rs 50 MILLION * MILLION , every year  !

And  YOU  just don't have that kind of money  !

Even as  { Rs 500 MILLION * MILLION  }  of Black Money is locked up in un-productive assets , all over the country  !

The only way you can create those 50 million jobs / year , is to enable these Black Monies to turn into WHITE MONEY and get channeled into Infrastructure / Manufacturing / Services etc

And the only way you can do is to ,

*  Introduce Amnesty Scheme   ( now / immediately )

*  Introduce INVERSE TAX REGIME  ( in 2015 Budget )

I have sent these proposals to Shri Narendra Modi / Shri Murli Manohar Joshi / Shri Nitin Gadkari etc , during the past 8 months

*  hemen  parekh  ( 08 July 2014 / Mumbai )